Santander reported Q2 net income of €3.5bn, a 3% rise year-on-year, after a €250mn restructuring charge tied to its £2.65bn acquisition of UK bank TSB. Excluding the charge, underlying profit jumped 17% to €3.8bn, driven by higher fee and lending income.

Executive chair Ana Botín called the TSB deal completion "another important milestone" in the group's strategy to focus on core markets. Santander expects at least £400mn in annual cost savings from the integration, equivalent to 55% of TSB's cost base, with a potential additional £100mn after 2028. The combined business will operate as Santander UK, retiring the TSB brand after more than 200 years.

The quarter was boosted by a 7% rise in net interest income and a 9% jump in net fee income. The corporate and investment bank generated €4.8bn in first-half revenues, up 16%. Loan-loss provisions rose 13% to €3.3bn, mainly reflecting trends in Argentina. Higher rates have made Santander the Eurozone's most valuable listed lender.